"A Crypto-Asset Service Provider (CASP) license grants permission to provide specific crypto-asset services, defined in detail in the regulation. It does not grant permission to operate a payment institution, issue electronic money, or run a derivatives trading venue. Those activities sit under entirely different regulatory frameworks. And for many platforms whose commercial model depends on at least one of them, the MiCA license alone leaves a gap that is operationally significant and, if ignored, legally serious."
"MiCA is comprehensive. It covers ten categories of crypto-asset services. Its scope extends to custody, exchange, execution, routing, advice, and portfolio management. For most retail crypto platforms, that covers a substantial portion of their business. But substantial and complete are different things. The platforms most likely to discover a significant difference are not marginal operators. They are the ones running derivative products, enabling crypto-funded card payments, offering leveraged perpetual positions, or hosting prediction markets."
"These prediction markets have become a major trend for centralized exchanges (CEXes), yet they sit at a regulatory boundary that MiCA does not cross. Instead, they often fall under local iGaming regulatory frameworks. These are commercially significant product lines at major exchanges, and each one operates outside MiCA's scope. The regulation is specific about what it governs."
"Article 2(4) of MiCA explicitly excludes from its scope crypto-assets that qualify as financial instrum"
A CASP license under MiCA permits providing defined crypto-asset services listed in the regulation. It does not authorize payment-institution activities, electronic-money issuance, or operating a derivatives trading venue, which fall under different regulatory frameworks. Many platforms assume MiCA covers the full range of what a crypto exchange does, but MiCA covers ten categories of crypto-asset services and may not cover all commercially important product lines. Derivatives products, crypto-funded card payments, leveraged perpetual positions, and prediction markets often sit outside MiCA’s scope. Prediction markets frequently fall under local iGaming rules. MiCA’s scope is specific about what it governs, including explicit exclusions such as crypto-assets that qualify as financial instruments.
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